Our current tax law includes a phased in approach for how much of your Social Security benefit is included in your “taxable Income” at tax time.
Current rules:
Married filing Jointly: if your adjusted income from all sources +50% of Social Security benefit is over $44,000 then up to 85% of your social security benefit reported on the 1099 is included as taxable income on your return.
However, there is a new bill in congress that would exempt all of your SS benefit from being included. That would definitely help lower tax bills for retirees!
Here is a quick summary link: https://www.thinkadvisor.com/2022/08/29/new-bill-would-repeal-all-taxes-on-social-security-benefits/
The full text of the bill is here: https://www.congress.gov/bill/117th-congress/house-bill/8717/text/ih?overview=closed&format=txt
